- Croatian banks extend additional credit to Kali Tuna of
$11.6 million, proceeds to be used as
working capital for growing inventories
- Finalizes line of credit of $15
million with its major shareholder
- Finalizes term loan with new investor of $5 million gross proceeds
NEW YORK, Oct. 12 /PRNewswire/ -- The Board of Directors of
Umami Sustainable Seafood Inc. ("OTC Bulletin Board: UMAM") (the
"Company") today announced credit facilities of $11.6 million from Croatian banks to be used to
fund the growth of inventory in Umami's Croatian operation, Kali
Tuna. Additionally, Umami has finalized its previously announced
$15 million line of credit, which was
extended to Umami by its shareholder, Atlantis Group, on
June 30, 2010. In addition, the
Company closed on a $5 million loan
from a third party lender. The line of credit from Atlantis
Group and the loan from the third party have been and will be
utilized by the Company to, among other things, partially fund the
Baja Aqua Farms acquisition.
In announcing the additional facilities, Oli Steindorsson,
Chairman of the Company stated: "I am pleased to see the confidence
being shown in us through the availability of a variety of
additional credit facilities which are being provided on attractive
terms. We are in the process of accumulating funds that can be
utilized both to finance the growing of inventory, following record
catches this year, and completion of our Baja acquisition, which will result in Umami
becoming the world's leading producer of bluefin tuna.
We have previously reported the completion of very successful
fishing seasons in our Croatian operations and in Baja Aqua Farms,
in which the Company owns a 33% interest and in which the Company
has exercised an option to acquire the remaining 67%. While this
places us in a very strong position of high levels of livestock at
a time of rising prices, we also needed to secure an adequate
supply of working capital so that we can continue lengthening our
farming cycle. Because larger fish result in higher prices, this
helps ensure premium prices at harvest."
Mr. Steindorsson continued: "Against the background of our
continuing improvements in our existing operations and planned
acquisition, our financial performance is particularly satisfying,
with consolidated operations, assuming the acquisition is
completed, expected to generate significantly higher revenue and
earnings our fiscal year ending June
30, 2011." Mr. Steindorsson concluded: "We continue to
look for opportunities to enhance high quality farming and
processing facilities in our key markets and, most importantly,
will look to extend our well developed sustainability platform
within the industry."
Forward Looking Statements
This press release contains projections and forward-looking
statements, as that term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions, involving known and unknown risks and
uncertainties. Forward-looking statements are statements that are
not historical facts. Such forward-looking statements, based
upon the current beliefs and expectations of Umami's management,
are subject to risks and uncertainties, which could cause actual
results to differ from the forward-looking statements. The
following factors, among others, could cause actual results to
meaningfully differ from those set forth in the forward-looking
statements:
- Continued compliance with government regulations;
- Changing legislation or regulatory environments, including with
respect to changes in quotas for Bluefin Tuna;
- Requirements or changes affecting the businesses in which Umami
is engaged;
- Industry trends, including factors affecting supply and
demand;
- Labor and personnel relations;
- Credit risks affecting Umami's revenue and profitability;
- Umami's ability to effectively manage its growth, including
implementing effective controls and procedures and attracting and
retaining key management and personnel;
- Changing interpretations of generally accepted accounting
principles;
- General economic conditions; and
- Other relevant risks detailed in Umami's filings with the
Securities and Exchange Commission available on the SEC's website (
http://www.sec.gov).
The information set forth herein should be read in light of such
risks. Umami does not assume any obligation to update the
information contained in this press release.
If you would like more information, or to schedule an interview
with Mr. Steindorsson, please contact Karl
Petur Jonsson, by emailing karl@atlantis-ltd.com, or calling
+354 664 0000.
SOURCE Umami Sustainable Seafood Inc.
Copyright . 12 PR Newswire